2.7 - Self-Employed

Self-employed persons or person with Self-Reported wages with any other employees, business partners or shareholders are not eligible for assistance or the Health Card.

Guidelines for providing assistance for applicants who are self-employed:

• Assistance may only be as a last resort; all other sources of income must have been explored.
• No self-employed person(s) with employees, business partners or shareholders are eligible for assistance.
• Assets normally required to carry on the self-employment are not to be considered when determining initial eligibility for short term assistance, but must be assessed after six months if not generating income.
• Only the regular Wage Exemption is applied, after eligibility is established.
• All self-employed income for Applicants is considered Self-Reported Wages, which means no business deduction is considered when calculating their income until their case plan is approved by a case manager.

Guidelines for providing assistance for clients who become self-employed are:

• For all clients, except those certified blind, deaf or disabled:
  • They must have a case plan approved by their case manager supporting their ability to operate their own business.
  • They must have reasonable potential for becoming self-sufficient within twelve months. After twelve months, if they don’t reach self-sufficiency, their income may be considered as Self-Reported Wages.
• For clients who are certified blind, deaf or disabled:
  • They must have a case plan approved by their case manager supporting their ability to operate their own business.
  • After 12 months, if there is no reduction in their assistance from the Self-Employment income, it may be considered as Self-Reported Wages.
• Assets normally required to carry on the self-employment are not considered a resource when determining initial eligibility for clients but may be assessed and considered a resource after twelve months if not generating income.

Income will be calculated as gross revenue (sales or earnings) less business expenses to a maximum amount of 50% of gross revenue.  This does not apply to Self-Reported Wages and applicants.  The regular wage exemption also applies to clients with self-employment income and Self-Reported Wages.

Applicants and clients receiving financial assistance linked to federal programs like the Federal Self Employment Assistance Program (SEA), will have this income deducted from their basic rate for the duration of the program. Income generated by these businesses will be treated as for all other self-employed applicants and/or clients.

Self-Reported Wages is considered A Wage. This is for individuals who receive wages from self-employment, however, do not meet the requirements for “Clients Who Become Self-Employed”, and all Applicants. The self-reported wages for applicants and clients are calculated based on total gross income received with no business expense deduction. The regular wage exemption is applied to Self-Reported Wages for clients, but not for applicants.

For clients who become self-employed, and meet all these criteria:

• They must have a business plan prepared by a third party such as an accountant.
• They must not have previously accessed the Wage Exemption for Self-Employed Clients. That is, this is a one-time-only entitlement.
• They must have a case plan approved by the case manager.
• They must show potential to become self-sufficient within 12 months.

The income from such self-employment is totally exempt during the three of the first twelve months of business, and during the rest of the twelve months, they may be eligible for the regular Wage Exemption. Clients are only entitled to the total exemption for three months once.